Bob Iger, Chairman and CEO of The Walt Disney Company, pauses as he speaks at an Economic Club of New York event in Midtown Manhattan on October 24, 2019 in New York City.
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disney has abandoned plans to open a new employee campus in Lake Nona, Florida amid rising tensions with the state’s governor.
Citing “changing business conditions” and the return of CEO Bob Iger, Josh D’Amaro, chairman of Disney’s parks, experiences and products division, wrote a memo to employees on Thursday announcing that the company will not proceed with the construction of the campus and will no longer ask more than 2,000 California-based employees to move to Florida.
“This was not an easy decision, but I believe it is the right one,” D’Amaro told employees.
Many Disney employees opposed the company’s relocation plans when they were first announced in July 2021 by former CEO Bob Chapek. While some left the company or moved to other positions within Disney that would not require a move to Florida, others hoped the plan would fail after a delay. The campus was originally scheduled to open in 2022-2023, but was later delayed to 2026.
Disney is headquartered in Burbank, California, but has a number of satellite offices around the country and the world.
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D’Amaro said employees who have already moved to Florida may be able to move back to California.
“It is clear to me that the strength of this brand comes from our incredible people, and we are committed to handling this change with care and compassion,” he said.
Disney’s announcement comes amid a bitter feud between the company and Florida Governor Ron DeSantis. The company filed a lawsuit accusing DeSantis and his special district’s new board members of waging a campaign of political retaliation against the entertainment giant.
DeSantis targeted Disney’s special district, formerly known as the Reedy Creek Improvement District, after the company publicly criticized a controversial Florida law — dubbed “Don’t Say Gay” by critics — that has derailed discussion of sexual orientation and gender identity in classrooms limited.
The special district has enabled the entertainment giant to effectively self-manage the operations of Orlando’s parks for decades. The district was eventually left intact, but the five-member board was replaced by DeSantis picks and renamed the Central Florida Tourism Oversight District.
Disney filed a lawsuit in late April after the new board voted to cancel development contracts the company said it had made to protect its investments. The company has since updated that lawsuit with newly passed legislation targeting the monorail system as further evidence of governor retaliation.
Iger has publicly criticized DeSantis and the Florida government, noting that Disney has created thousands of indirect jobs, attracts about 50 million visitors to Florida each year, and is the state’s largest taxpayer.
Stickers and clothing promoting Florida Governor Ron DeSantis lie on a table before a book tour at the North Charleston Coliseum on April 19, 2023 in North Charleston, South Carolina.
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In a statement later Thursday, representatives for DeSantis called the decision to close the Lake Nona campus “unsurprising.”
“Disney announced the possibility of a Lake Nona campus almost two years ago. Nothing ever came of the project and the state was unsure if it would come to fruition,” DeSantis’ office said in the statement.
D’Amaro reiterated in his memo that the company still plans to invest $17 billion in Florida over the next 10 years, including the addition of about 13,000 jobs. The company currently employs more than 75,000 people in the state.
Disney declined to provide specific updates on that investment, but has previously announced plans to update park attractions, expand existing parks and add more cruise ships to its Florida fleet.
“I remain optimistic about the direction of our Walt Disney World business,” D’Amaro told employees.
